Canada’s job market is taking a hit. Over 100,000 full-time positions have disappeared since the start of 2026.
This has pushed the unemployment rate to 6.7%—the second-highest among G7 nations after France. Ouch.
February saw the steepest drop in employment since the Covid-19 pandemic, with wholesale and retail trade feeling the biggest pain.
So, what’s behind the sudden slide? Much of it comes down to US tariffs.
Prime Minister Mark Carney admits these trade actions are “causing big adjustments in the Canadian economy,” as Ottawa scrambles to shield businesses and workers.
Katherine Judge of CIBC Capital Markets called the report “very worrisome.”
She noted that labour market slack has increased and activity has slowed due to the trade uncertainty.
Trade Vulnerability Rises
And the opposition isn’t holding back—Conservative leader Pierre Poilievre said the numbers are “terrible news.”
He partially blamed Carney’s leadership, pointing out that other G7 economies are not shrinking under similar US tariffs.
The bigger picture? Canada sells around two-thirds of its goods to the US, making it extremely vulnerable to American policy swings.
With the USMCA trade deal under review and Trump hinting at possible changes, uncertainty isn’t going anywhere soon.
So, while wages are creeping up, Canadians are left asking: can the economy weather these tariffs, or are more jobs about to vanish? Either way, Carney’s got his hands full.
